Xtreme Drilling Corp. Announces Third Quarter 2016 Financial and Operating Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 11/03/16 -- Xtreme Drilling Corp., formerly Xtreme Drilling and Coil Services Corp., ("Xtreme", the "Company") (TSX: XDC) announces third quarter 2016 financial and operating results. It is anticipated that filing will take place on SEDAR of interim Consolidated Financial Statements as well as Management''s Discussion and Analysis for the three and nine months ended September 30, 2016, by November 4, 2016.
Q3 2016 Highlights
(amounts in thousands of Canadian dollars, unless otherwise noted)
Selected Quarterly Financial Information from Continuing Operations
Excerpt from Management''s Discussion and Analysis for the period ended September 30, 2016
OUTLOOK
North American drilling activity increased during the third quarter. The US rig count was up nearly 22% to 497 operating rigs. Customer inquiries have increased as operators are finalizing initial budgets for 2017. It is expected that activity levels will continue to increase into 2017. In Canada, the Company recently put a rig back to work. While the market remains depressed we feel that operator sentiment is slowly improving and that additional opportunities for the other two idle rigs will be available in coming months.
Operators have continued to increase average lateral lengths in most resource plays in response to increasing EURs with the application of enhanced completion technology across longer laterals. In addition, the greater adaption of rotary steerable tools to land drilling operations has improved the quality of the well bore and facilitated longer laterals.
In response to market requirements, Xtreme has finalized an upgrade design to its existing XDR 400 rigs that will increase the capacity of our XDR 400 rigs and will exceed today''s operator requirements. The company is negotiating long lead time and key components with vendors and has a target of the initial upgrade being completed in Q3 2017. Depending on market demand and opportunity, the Company retains the option to upgrade additional rigs.
These upgrades will result in a fast moving rig with leading edge technology that includes a patent pending X/Y walking system, quintuplex 7,500 psi highly efficient capacity mud pumps, and a craneless 850,000 pound fast moving mast and substructure. This upgraded rig is designed to be the most reliable and efficient rig in today''s resource plays. It is true to the innovative and technology focused spirit of Xtreme.
In addition to the XDR 400 upgrade, the Company is focused on continuing to upgrade the mud pumps and fluid system on existing XDR 500 rigs to 7,500psi. Currently the Company has five upgraded rigs and plans to upgrade an additional three XDR 500 rigs in the coming months.
The Company continues to market the XDR 200 and 300 rigs to international customers with optimal applications for these shallower depth capacity, fast moving, high tech AC rigs. The pre-qualification process is near completion in two Middle East markets and the Company anticipates bidding on projects in the coming months.
Currently the Company anticipates a 2017 capital budget of $12 million. The announced 850XE upgrade process will cost between $8 million and $9.5 million depending on final rig specs. Even in the depressed market environment the Company is confident that the utilization and premium rates on this rig will generate attractive returns over the next cycle and justify the capital investment.
It is clear that the North American land drilling market continues to evolve to deeper and more technically challenging well profiles. Xtreme is committed to remain on the cutting edge of efficiency and technology as we deliver world class reliability, efficiency and service to our customers.
Conference Call Details
Xtreme has scheduled a conference call to discuss results with investors, analysts, and stakeholders on Friday, November 4, 2016, beginning promptly at 9:00 am MT (10:00 am CT, 11:00 am ET).
Matt Porter, President and Chief Executive Officer, will host the conference call.
Conference operator dial-in numbers
To participate in the conference call, please dial in as follows approximately ten minutes before the start time in your time zone.
+1 844-889-6858 (North America Toll-Free) or +1 661-378-9711 (International)
Webcast: Conference ID: 92748782
An audio replay of the call will be available until Thursday, November 10, 2016. To access the replay, call +1 (855) 859-2056 or +1 (800) 585-8367 and enter Conference ID 92748782.
EBITDA from Continuing Operations
EBITDA from Discontinued Operations
EBITDA from Continuing and Discontinued Operations
Adjusted EBITDA from Continuing Operations
Adjusted EBITDA from Discontinued Operations
Adjusted EBITDA from Continuing and Discontinued Operations
Non-Cash Items and Other Non-Recurring Items from Continuing Operations
Reader Advisory
This news release contains forward-looking statements ("FLS"). The use of the words "may", "believe", "could", "would", "might", "will be taken", "occur" or "be achieved" and similar expressions identify FLS. More particularly, this news release contains statements that may relate to contracting, marketing, financing, construction, modifications, deployment, operation, utilization of drilling rigs in the Company''s current and future fleet. Although Xtreme believes expectations reflected in these FLS are reasonable, readers should not place undue reliance on them because Xtreme can give no assurance they will prove to be correct. There are many factors that could cause FLS not to be correct, including risks and uncertainties inherent in the Company''s business.
These statements are based on certain factors and assumptions including, but not limited to: the assessment of current and projected future operations; ongoing and future strategic business alliances, negotiations and opportunities to enter new, extend or complete existing contracts; the availability and cost of financing; foreign currency exchange rates; timing and magnitude of capital expenditures; expenses and other variables affecting rig operation, modification and construction; the ability and commitment of vendors to provide rig component equipment, services and supplies, including labor, in a cost-effective and timely manner; the issuance of applied-for patents; changes in tax rates; and government regulations. Although Xtreme considers the assumptions used to prepare this news release reasonable, based on information available to management as of November 3, 2016, ultimately the assumptions may prove to be incorrect.
Forward-looking statements are also subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from management''s current expectations. These factors include, but are not limited to: the cyclical nature of drilling market demand, foreign currency exchange rates, and commodity prices; access to credit and to equity markets; the availability of qualified personnel; vendor-provided rig components; and, competition for customers.
Management''s assumptions considered the following: compliance with the terms of the Company''s current and proposed new credit facility; ongoing access to key supplies and components required to continue operating and maintaining equipment, including fuel; continued successful performance of drilling and related equipment; expectations regarding gross margin; recruitment and retention of qualified personnel; continuation or extension of existing long-term or multi-well contracts; revenue expectations related to shorter-term drilling opportunities; willingness and ability of customers to remit amounts owing to Xtreme in accordance with normal industry practices; and management of accounts receivable in direct relation to revenue generation.
In preparing this news release, management considered the following risk factors: fluctuations in crude oil and natural gas prices, supply and demand; fluctuation in foreign currency exchange and interest rates; financial stability of Xtreme''s customers; current and future applications for Xtreme''s proprietary technology; competition from other drilling contractors; regulatory and economic conditions in regions where Xtreme operates; environmental constraints; changes to government legislation; international trade barriers or restrictions; and, where appropriate, global political and military events.
Financial outlook information contained in this news release about prospective results of operations, financial position or cash provided by operating activities is based on assumptions about future events, including economic conditions and proposed courses of action, and on management''s assessment of relevant information currently available. Readers are cautioned such financial outlook information contained in this news release is not appropriate for purposes other than for which it is disclosed here. Readers should not place undue importance on FLS and should not rely on this information as of any other date. Except as required pursuant to applicable securities laws, Xtreme disclaims any intention, and assumes no obligation, to update publicly or revise FLS to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such FLS or otherwise, or to explain any material difference between subsequent actual events and such FLS.
Contacts:
Xtreme Drilling Corp.
Matt Porter
President and CEO
tel: +1 281 994 4600
Xtreme Drilling Corp.
9805 Katy Freeway, Suite 650
Houston, TX 77024
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Datum: 03.11.2016 - 18:49 Uhr
Sprache: Deutsch
News-ID 1467981
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